The Lahore High Court LHC on Tuesday set aside finance ministry’s notification of the levy of regulatory duty on 700 imported items.
Last year in October, the Federal Board of Revenue (FBR) issued a notification with the help of finance ministry to impose a regulatory duty on import items in order to increase government’s tax revenue.
Supreme Court temporarily allowed FBR and the government to continue imposing the regulatory duty in order to collect revenues and meet their targets.
The company Global Steel has challenged the SRO No. 1035 (1)/2017 the regulatory duty was imposed in the Lahore High Court (LHC)—Tribune reported.
The company’s counsel said that the federal minister is not authorized to approve and issue the notification in order to impose the regulatory duty and this act is considered illegal and unlawful. Therefore, the challenged notification should be revoked.
The counsel argued at the LHC that regulatory duty should only be imposed to tackle the uncertainty of the market and not to collect additional revenues and taxes, and not to take away the reasonable profit the companies are allowed to make.
Justice Karim after hearing the counsel’s arguments allowed the petitions and set the notification aside for being issued unlawfully and without the authority.